Every NGO (trust, society or nonprofit company) is required to get registered with income tax department under income tax act 1961 in order to claim tax exemption for their income. Every NGO should apply for registration from the date of its establishment and get 12A certificate from income tax department. This 12A certificate is known as registration certificate.
CONDITIONS AS TO REGISTRATION OF TRUSTS, ETC.
The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:-
DOCUMENTS REQUIRED FOR 12A:
The first step of registration you have to fill a FORM 10A and this form has to be submitted to the commissioner of income tax. If your NGO is established in metropolitan cities like Delhi, Calcutta, Mumbai and Chennai, then you have to produce the FORM 10A to the Director of Income Tax (Exemption), Income tax department office. The application form should be sent in triplicate to the Commissioner of Income Tax along with the following documents:
Note: Before submitting FORM 10A, please make sure that you have received PAN CARD for your NGO.
After you have produced the above FORM 10A either through registered post with acknowledgement due or directly in the Income Tax office. The Commissioner of Income Tax, on receipt of an application for registration of an NGO, shall call for such documents or information, as he thinks necessary.
While processing such application, the concerned authority normally concentrates on the genuineness of the NGO. Once the genuineness of the activities & creation is established, then it is incumbent upon the authority to pass an order in writing, registering the NGO.
The Income tax officers have the rights to grant or to refuse registration to your application. Also, note that, 12A registration of an NGO shall be cancelled by the Income tax department, if it feels that NGO is not fit as per law at any point of time.
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